Iran's Rial Hits Record Low of 1.8 Million per USD

TEHRAN, Iran — Iran's national rial currency plunged to a record low of 1.8 million rials per U.S. dollar on Wednesday, amid a fragile ceasefire with the United States and Israel following a weeks-long war that began on February 28.

The currency had held steady during the conflict's early stages, largely because limited trading and imports curtailed market activity. However, it began depreciating two days prior to Wednesday's low, according to open-market rates. Experts cautioned that the decline will exacerbate inflation, as Iran relies heavily on imports for food, medicine, electronics and raw materials, all priced against the dollar.

Although active fighting has ceased, a U.S. naval blockade persists, intercepting oil shipments and depriving the government of vital revenue and hard currency. Oil exports represent a cornerstone of Iran's economy, and the blockade has intensified strains on businesses, households and state finances already burdened by decades of international sanctions, persistent inflation and a growing disparity between official and black-market exchange rates.

This is not the first such crisis. In January, the rial weakened from about 1.4 million to 1.6...